| >of course whoever has servers closer to the exchange can do HFT better Can do better at what? Can get their trade in the order book faster? Yes they can. But does that automatically mean they will make more money? No it does not. >If you're a private person with 100 years experience in trading, you still can't do HFT. Of course not, 100 years ago there were no computers. Having 100 years of experience in trading on the pit would not give you any expertise in software development. Someone with 10 thousand years of experience plowing can't compete against someone with a tractor. That's kind of the point of the tractor... I'm sorry that it disturbs you that the Average Joe sitting at home with his discount online brokerage account is unable to gain the same kind of benefits putting out individual orders here and there on speculative stocks that he likely knows nothing about, that hedge funds, institutions, and other highly specialized and skilled professionals are able to gain by doing this for a living. The Average Joe does have access to highly diversified and low fee ETFs, and as I said the Average Joe can reap almost all of the rewards that the best hedge funds and banks do by sticking to those instead of trying to play the market. |